about. president bush, before he left, he was very into mars as the next destination, frontier for nasa and the united states. sometimes it takes the big think from above and we will see if this government weighs in too. >> interesting fact. the president who signed off on the idea of the shuttle. >> who? >> who saw the model? president nixon. a long time ago. >> almost. >> that does it for us. for now, kyra phillips takes over with "cnn newsroom." >> good morning. it's 9:00 a.m. on the east coast and 6:00 a.m. on the west coast. i'm kyra phillips. a tough wait for casey anthony and everyone invested in her murder trial. she is accused of killing her 2-year-old daughter caylee. the jury beginning second day of deliberations. former imf chief dominique strauss-kahn facing a you new complaint. a writer says he tried to rape her eight years ago. her lawyer is following the charge with prosecutors. senate back in session after

the holiday weekend. top of the agenda? the jet ceiling deadlock. the treasury due to run out of money in less than a month. we begin this morning, it's been more than 30 hours in shark-infested water. coast guard crews and mexican navy still searching off the baja peninsula for several people still missing in a boating accident that ran into bad weather and cap-sized and sank early sunday. more than 40 people on board and more than half of them americans. most have been rescued, but they had to wait hours for help. >> he was in the water about 12 hours and i think he said he swam or at least he told me to my last call to him he swam maybe about eight miles. >> they had life jackets on and they actually didn't have time to put on life jackets so that's a good thing. >> there is some conflicting reports as to just how many people are still missing. we're hearing at least five, possibly as many as eight. joining us now with more on the rescue effort, coast guard

lieutenant bill burwell. i know you're going on very little sleep in the past 36 hours. first of all, can you confirm the number of missing people that you are searching for right now? is it five, six, seven, eight? >> the truth is, we don't know a specific number. we were told between six and nine people and we're out there searching for any survivors. so the number really is inconsequential to us. we are just looking for those that are surviving and we are continue to do so throughout the night and this morning. >> let's talk about those efforts, lieutenant. you're the one that has been out there involved in this mission working with the mexican authorities. what exactly are you doing right now and what are the biggest challenges that you face? >> kyra, we have c-130 on the scene that is conducting a search. they are able to use a multitude of sensors to look through the sea of cortez near the debris

field and then we are also plotting drift throughout the night, through this morning, to see if we can find anything. we've had two crews flown out for our rescue helicopters and there is multiple mexicans both airborne and surface assets looking for any signs of survivors. >> any signs of life in the past, say, 12 hours? >> we have not recovered any survivors in the last 12 hours. we are continuing to search. search conditions are good. storm blew through but good visible. the water is warm, about 85 degrees and if someone is out there, there's a good chance they are still surviving. we will keep looking for them. >> we know sta that is exactly what you will do and you won't give up until you do know. lieutenant bill burwell, i know a long couple of days for you. sure appreciate you calling in. we will continue to follow the story. >> thanks, kyra. >> you bet jacqui jeras has been

watching the weather. let's talk about the conditions they are dealing with right now. you heard the lieutenant. warm waeter that is great if a group or individuals are surviving this right now. >> 85 you can survive in that. whether or not you have a flotation device on and maybe getting some waters as waters are extremely warm in this area. clusters of showers and thunderstorms south of there. this is known as the gulf of california and also the sea of cort cortez. this is very near where the boat was cap-sized and this is a very remote area so that is part of the reason why they had such a long period of time before they were able to find anybody. only about four miles between the island and the peninsula here, so people were able to swim to shore before they got some of that help. now, clear conditions expected today. very little chop in the sea so that is the great news as well. however, we do expect some moisture to pull into this area this afternoon and kick up some

showers and thunderstorms. so any showers and thunderstorms that do develop, of course, they produce lightning, that will be a concern, and also will cause some erratic winds which will help bring the seas up just a little bit. that is the biggest concern they are are going to be dealing with the next couple of days. day two of deliberations in the casey anthony trial. cnn's david mattingly is following the developments out of orlando. what is the atmosphere right there? a lot of anticipation, no doubt, building. >> reporter: no doubt. also, we were watching very closely this morning casey anthony in court. she seemed somewhat agitated today, involved in a very animated conversation with one of her defense attorneys. we have no idea what that was about. but we do know the jury is back at work today after getting a half day in yesterday. they heard some very powerful words from the prosecution, calling casey anthony a

pathological liar and posing the question, who else but casey would have benefited from the murder of her daughter caylee? they say casey anthony yearned for a carefree party life and her daughter was getting in the way. while they worked today under closed doors and police guard, the police are in the neighborhood where casey anthony's parents live. a make-shift memorial has hopped up in the woods near their home where little caylee's body was discovered and people are coming by this leaving stuffed animals and cards and balloons and sentiments. people trying to remember the little girl whose death started this intensely watched investigation and murder trial. but for here, right now, at the courthouse itself a great deal of anticipation and everyone just watching, wondering what is important to this jury, what are they talking about, when will they come to a decision and what

will happen now to casey anthony. kyra? >> david mattingly there in orlando, we will continue to wait as the jury has begun second day of deliberations. more insight into the trial from our criminal defense attorney holly hughs who joins us in the studio in about 20 minutes. while one attempted rape case against imf former chief dominique strauss-kahn is falling apart, seems he could be facing another one. monita, we got word of the frerch journalist saying strauss-kahn attempted to rape her eight years ago and learning more about her and exactly what type of evidence she might have. let's begin is there a statute of limitations on this in france? >> reporter: it's really interesting, kyra, in this case. we understand that this case took place eight years ago. of course, many people are asking questions as to why it has taken this journalist this long to file this criminal

complaint against mr. dominique strauss-kahn. they have been saying that it took this long because the alleged victim's mother had advised her not to file a complaint because mr. strauss-kahn is a high profile person and that this could be something that would be a stain against her career. we understand in france, there is a statute of limitations against cases of this nature. if there is an attempted rape or rape, there is a statute of limitation of ten years. for sexual assault, there is five years. that, of course, poses i guess, a hurdle for the alleged victim in order to prove that this was, indeed attempted rape. in order to fit within that ten-year time frame. if it was sexual assault, she would have passed that five-year mark. >> do we know anything more about this french journalist? apparently this interview took place. to we know where? a hotel room eight years ago? >> it took place -- it took place at strauss-kahn's national

assembly office. >> okay. >> again, in 2003. a discrepancy whether 2002 or 2003. apparently she had done an interview with him. then a text message he wasn't happy with a few of the things that were said within that interview so he called her back to the office allegedly and that is where this alleged incident took place that, apparently, she was, according to reports, roughed up and she was then, obviously, very shaken up by this whole incident and that was when she contacted her mother reportedly indicating what had allegedly happened. >> we will keep following it. 16 months out from the presidential election and we don't know who the republican candidate will be but already we have one big group that is throwing its support behind president obama. jim acosta is on that for us out of washington this morning. hey, jim. >> reporter: good morning, kyra. this is not a big surprise. we went a lot of time talking about the republican race for

2012. on the democratic side the president picked up an important endorsement yesterday from the national education association. this is the teachers union as everybody knows. and the vice president gave a pretty important speech yesterday to this union and so, today, the teachers union is throwing its support behind the president. not unexpected, as i mentioned. we got a quote from the president of the nea, dennis van roekel. what is somewhat surprising about all of this is that the nea would come out with this endorsement this soon. the president has sort of occasionally and his administration has occasionally shown tough love toward the teachers around the country and the nea has come out strongly behind the president he saying they are concerned about what is happening in state houses, going into republican hands. so a pretty big move there by the nea to get behind the

president. also talk about the republican side of the race for 2012. got great video to show you out on the campaign trail. fourth of july is important for presentations. parades and picnics to talk to voters out there. mitt rom nen' jney and jon hunt the same parade. that didn't just happen in new hampshire yesterday. in clear lake, iowa, michele bachmann and newt gingrich were working the crowds at the same parade. so not enough parades. too many candidates on the fourth of july yesterday. >> you would think there would be a few more options out there on the holiday. or maybe this was planned! >> reporter: you know, this just goes to show you when you just have iowa and new hampshire and south carolina to worry about for months and months and months, there aren't that many parades for these candidates to hit. so it makes it difficult. makes it easy for us. we can go to one event and get

two candidates your next political update in an hour. always get all of the political news 24/7 at cnn/politics.com. mox ko nabs a brutal drug lord in the war on drugs. drug violence in mexico is exploding. the number of deaths is shocking. coming up talk to an author of "the war next door." one of rupert murdoch's tabloids hacked the phone of a girl later found dead. that story is coming up in ten minutes.

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checking stories across the country. in california a bus carrying firefighters to battle a blaze in the national forest crashed in palm dale. nine people were injured and some were trapped inside that bus. in iowa, a teen run over by a train actually lived to tell about it. the 17-year-old tells police he had been drinking heavily and blacked out between the tracks. well, when he woke up, the train was passing over him with just a few cuts and bruises. railroad wants to press charges. in michigan, a prison inmate suing the state because he is not allowed to have his porn. kyle richards says that a lack of raunchy reading material has left him with a poor standard of living and sensory deprivation. the local sheriff isn't too sympathetic. police in mexico saying they have bagged a brutal king pin in the war on drugs. sunday, they arrested jesus ago

rear saying he is connected to the attacks that killed agent jamie sopoda. do you realize 40 years since president mixon began that war? it leads you asking what have we been doing the last four decades? "time" magazine is devoting cover story to "the war next door." tim paget covered it and he joins me live from miami. first of all, let me ask you about the latest news, tim. do you think the capture of the zetas founder will make any type of impact at all? >> i think it's a significant victory for the mexican government. he is one of the founders of the setas and talk about the cancer of drug violence in mexico, zeta are the most killest killing machine amongst the cartels in

mexico. former army commando recruited by the drug cartel in northeastern mexico and they are really the worst nightmare that mexico's lawlessness could produce. as you mentioned, even u.s. agents like zopata back in february. >> you point out in your article the last five years, 40,000 people have died on this war on drugs. a war that was implemented as i mentioned 40 years ago. why has this war been such a failure so ineffective? >> well, large part is just that -- on the mexican side anyway is just the utter lack of credible police and judicial institutions. one of the things we wanted to do with this article is put more of a human face on the mexican drug war tragedy and that is

important because as these drug cartels being more monstrously violent, they are killing increasingly innocent people. what that is doing is creating the emergence of victims groups like the one led by javier whose son was killed. they are beginning to put pressure on mexican politicians to get more serious about the kind of police and judicial reforms that are really mexico's only long-term solution to saving itself from this tragedy. >> tim, final point. i mean, and for years and you've covered this, too, the corruption within the police, the military, the politicians. i mean, that is also a fighting force in itself. >> oh, i mean, the big problem -- look. the united states is to blame to a large extent for this tragedy because of our drug consumption

and the weapons smuggled from the united states into mexico, but the largest part of the problem is the police corruption. most of the police -- i hate to say this -- but most of the police in mexico are, in some way, in the pockets of the drug cartels and until that is changed in mexico, nothing is really going to change. >> your work hasn't changed. more than 0 years, you have been tacklie ining this from every s angle possible. thanks on joining me, tim. >> thank you. a cell phone hacked making it difficult for people to solve the case. now questioning tabloid news executives. details from london in four minutes. duty-free shops, most people think they are a good deal because you're not paying taxes. but they might be overcharging you in other ways. alison kosik explains that. looking good! you lost some weight.

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how about showbiz headlines in we watched daniel radcliffe up playing "harry potter" in those movies. he says he became reliant on alcohol to fuel the long hours on the set. now 21, saying he got sober last year and enjoying life more. a video game will let you sing along. the game will break new ground and give you real-time feedback on how well you're doing. actor will smith reportedly putting together a team to do a re-make of the movie "annie." and will star his daughter will willow. he is reportedly talking to

smith for the replay. police say their investigation was messed up. give us the background on this, monita? >> reporter: we understand that this teenage girl in britain went missing in 2002 and later found ted. we are understanding what is emerging now the last day and today is that the phone of a journalist allegedly at "news of the world" allegedly hacked into her mobile phone and then deleted messages from her voice mail. according to these accusations and allegations, many messages were left on her voice mail on friends and relatives appealing her to contact them. they were, obviously, very distressed that she had been missing. then those messages, especially the ones left within the first couple of days she was missing, were deleted, allegedly by the journalist of news of the

world," which is owned by rupert murdoch's empire and directors of the news international are meeting with british police today. they are saying they want to cooperate with any sort of investigation. of course, this has police and, of course, the family of millie dalor extremely angry and many describing the situation as heinous as this, obviously, could affect the investigation as it was taking place. >> we will follow the investigation. duty-free is another way of saying tax-free and sounds like it would save you money but does it really? alison kosik has revelations from new york stock exchange. alison? >> reporter: you know what, kyra? it all depends on what you're buying. the reality is you can't be sure you're getting a good deal unless you know what the item costs in a regular retail store so you know what the advice is? do homework. what your currency is worth has a lot to do whether it's worth

it to buy in the duty-free shop. the euro is weak let's say and buying from a duty-free shop is not a great deal after all. even in "usa today" a traveler says he gets great deals in kenya but it depends on where you are. this is big business duty-free shopping. shoppers spent $39 billion at duty-free shops last year. >> what items is it worth it to buy at these shops? >> reporter: this is the meaty part here. three examples of the top items people go for. perfume and cosmetics. i say buy it duty-free especially if it's a multipack with more savings. if you're looking for cigarettes, buy those duty-free as well. the fact is we pay a lot in taxes here in the u.s. electronics, though, buy those at a regular retail store because they are going to be cheaper at the regular retail store and you may need to return it if something happens. what is in store for stocks

today? a flat open. trading is expected as we come off the strongest week in two years. a fact orders report out in half an hour. see if that moves the markets at all. kyra, back to you. >> thanks, alison. a portion of one of the nation's most pristine rivers polluted by an oil spill. the latest on the cleanup in four minutes. duke and duchess hit prince edward island head-to-head competing against each other in a dragon boat race! and the winner is? even though i'm a great driver, and he's... not so much. well, for a driver like you, i would recommend our new snapshot discount. this little baby keeps track of your great driving habits,

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check williing top stories. waiting for the jury to decide whether casey anthony is guilty of killing her -year-old daughter. a sexual assault complaint filed against dominique strauss-kahn. banon claims the former imf head tried to rape her eight years ago. search on for as many as nine people after a tourist boat cap-sized off baja, california. oil spilling is fueling one of the most pristine river. 40,000 gallons spilled into yellowstone river near billings. jacqui jeras is talking about the problems. you talk about the fact they can't get boats in the water?

>> the river has been in flood and over the weekend in particular with the historically high levels. so you can't get the boats in the water to help with some of this cleanup. now let's show you the area we are talking about. here is the state of montana. so this is not yellowstone national park here. this is on montana on the yellowstone river. we zoom in and show you this area. now, that river has been out of its banks and if you've ever seen a flooded river, there is also a lot of of debris in there. that is another concern. eight boats on stand-by right now. if the conditions improve, they hope to get those in there but, otherwise, using measures like trucks offshore to pump the water out of there. in addition to big absorbent damages, think of a cloth diaper, to help suck that up and move it out. the one good thing about the river being in flood is the current is moving very quickly and so when there is a fast current, that helps churn things up a little bit and helps dilute some of that oil which is out there. it's only moved about ten miles

so to speak but no dams are on this river either. it means it has the potential to flow a little bit farther. this is the latest river gauge at billings near the area where the spill is and here you can see that it did dip down below flood stage yesterday, but check out the forecast. that is this big green dotted line here. it's expected to to go back into flood some time late today or into tomorrow. so those river levels are going to continue to play a big impact, kyra, on what is going to be happening with the cleanup efforts here and just how far that oil could be spreading. >> jacqui, thanks. for a second day, the jury is out in orlando. they are weighing first-degree murder and six other charges against defendant casey anthony. she's at the courthouse awaiting her fait. according to cnn's david mattingly she seem agitated this morning and had some pretty intense chats with her lawyers. holly hughes is a criminal defense attorney and former prosecutor and she knows how both sides are feeling right now. first of all, do you know

anything about these conversations she was having with her attorney? do we have any inside scoop on what she was so rattled about? >> no. there wouldn't be. because, of course, those are privileged communications. but you've got to believe that now that it's come down to d-day, and that is decision day, deliberation day, done day. there is no more evidence, kyra. you got to believe she didn't sleep last night. she probably was up all night thinking about you should have said this, you should have said that, you should have let me testify, so i think what we're seeing is the reality hitting her. she is overtired like every single person involved with this case, and she is probably rerunning it through her head. you know how we do as humans. >> second-guess everything. >> yes! monday morning quarterback! we have come up with a phrase to describe that indecision we have about ourselves. we go and do something and step back and say maybe i should have done it dirfferently. i think she sheas her future on the line it's becoming very real

and probably panicking saying why didn't you do. >> from your experience, could we find out today her fate? could it happen today or do you think it's going to take a little more time? >> i think it might. think by the end of today or early tomorrow before lunch time, i think we may very well have a verdict. this is an older panel of people. the youngest is 32, goes up into the 60s, probably 70s. we are guessing about those ranges. so you've got a mature panel of people. they have been diligently taking notes the whole time. they are ready to get to work and get it done. i think we will see a verdict sooner, rather than later. >> stay with us. >> i will. on friday, we will witness the last flight for the space shuttle. looks like the private industry is picking up pace. that is coming up. l.z. granderson is talking directly to parents this week, saying the world should not act

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okay. there is kid-free resorts and there is kid cruises and when l.z. granderson heard major airlines might ban kids from first class and offer kids free flight, he cheered outloud. on the cnn.com opinion page,

l.z. says the rest of the world should not have to be subbed as he writes, bratty kids. define bratty for me, first, l.z. >> bratty kids. i think it would be any child in which the parent hasn't gotten in early on the discipline and so their behavior can't be modified and can't be regulated and it's really up to what the child feels like doing. >> you're saying the kid no no way, shape, or form could be brought up with a lot of splin and at the age of 2 or 3 or 4, boom, turn and become a nightmare? is that what you're saying? >> i'm not saying that. i have a son. i have been through every possible phase, you know, known to man when it comes to kids embarrassing you in the wrong places. but, you know, wrael the column talks about what parents should be doing in terms of understanding the rest of the world should not have to deal with the parenting or the discipline of their child. so if your kid starts freaking

out in the movie theater in the middle of a movie, take him out. i'm sorry if you're going to miss the movie. tough! that's what it means to be a parent. don't make the rest of us deal with your screaming kid! >> you can imagine this triggered quite a debate among the parents on our team. for the record, i take your side. then they say wait until your kid comes up. the argument is i can't just stay at home. i have to go to the grocery store and fly to see family. l.z., you have to be more compassiona compassionate. >> you know what? every situation is different. every child and parent relationship is different. but i think what we are seeing a trend in which because there are so many divorce situations in the country now, there's a lot of guilt. i deal with a lot of guilt in terms how i should be disciplining my son because i felt bad i was getting divorced to begin with so i didn't want to be the heavy to come down with discipline. the bible is right about discipline. you spare the rod, you spare the

child. i had to get tough. >> there is debate whether that exists in the bible or not. you and i will have to talk about that in the next segment, okay? that is the next one. let me ask you, what are you advocating here? are you advocating spanking, a smack on the cheek or as soon as the baby comes out of the womb you're giving it that look you better listen to me or you're going to know what is coming? >> i'm advocating discipline. whatever that discipline means to the parent. what i don't think is that we should be allowing kids to dictate what should happen in the environment. they are not the center of the universe. they are wonderful people, they are wonderful, cute created tours but the center of the universe. i think if we teach the kids early to become part of society and not society rotates around them, i think that is better for everyone. you won't have teachers having to be forced to spend so much of their teaching time disciplining

undisciplined children in the classroom. those children's can be more focused on teaching. those are the kind of progressive things i want to see happening and the reason why i wrote the piece. >> when my twins turn two, you will come down and have a discussion with them. >> absolutely! >> okay. great talking to you. you can read l.z.'s entire piece for curb your brats at cnn.com/opinion and join the conversation. l.z. loves that. the last space shuttle trip ever is friday but private industry is already stepping in. what they have in store coming up next. >> first guy out! second guy out! ha ha! yeah! >> that is way cool! >> injured in war but flying high on the fourth of july. more in two minutes.

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checking stories across the country. barge used to set off fireworks for the boston's fourth of july celebration smoldered in the river. in north carolina, robert robertson thought he was being given a police escort to the

hospital. he was taken there after suffering a heart attack. turns out they were wrong. he now faces reckless driving charges. in colorado new heights for disabled war veterans. a group was taking a tandem sky diving on the fourth of july. the event was organized by operation rebound. a nonprofit group that helps disabled war veterans. the final shuttle flight is friday. the "atlantis" astronauts are preparing for the end of an era. after that, it's up in the air or as some worry, neighbmaybe n is up in the air a long time. our john zarrella says the u.s. future in space may not be through the government, but, rather, private industry. ilan musk runs space x and richard branson heads virgin galactic. both are using bold attempts to make space travel as routine as boarding an airplane.

>> people used to say to me, look. it would be impossible to build your own spaceship and your own spaceship company and be able to take people into space. that's the kind of challenge that i love to sort of prove them wrong. >> i want to see a future where we are exploring the stars, where we are going to other planets and we are doing the great things we read about in science fiction and in the movies. >> reporter: there are several companies. some big, some small, who see as nasa moves on to distant planets, that weightless region just above the atmosphere. just out of reach right now, becoming quite possibly a good investment. >> nasa is still in there. still going to develop a heavy lift rocket but we also got this hopefully flowering space flight and get us the hiltons or hertz rent a cars and whatever in orbit. >> reporter: space x and virgin galactic are on the verge of not just opening -- >> liftoff!

>> reporter: but stepping through that door to the future. >> we want to make space accessible to everyone. that's a revolutionary change but it's incredibly exciting and it brings the possibility of space travel to all americans, which is fantastic. >> reporter: next year, musk hopes to begin carrying cargo to the international space station. eventually astronauts. a commercial company replacing the space shuttle. >> we believe firmly we can send astronauts to the space station within three years of receiving a nasa contract to do so. >> reporter: but unless it's safe, nasa's administrator says no astronaut will be on board. >> i cannot allow them to put us in jeopardy by not focusing on crew safety and the like. that's my job. >> reporter: the stakes are high. there is no turning back. >> please welcome the future of space shuttle. >> reporter: with shuttle

retired and astronauts left to ride in russian spaceships, nasa is counting on commercial companies to get it right, make it work, and the more who make it work, the more affordable it will become. >> that's the end of a particular era and it's up to individuals like myself, if you're in a position to be able to, you know, achieve wonderful things, you know, not to waste that position. >> liftoff. falcon 9. >> john zarrella is joining us now at kennedy space center. you're getting me excited! you're doing such a great job. talk about nasa turning these low orbit flights to commercial companies. there already has been so much progression in that area. let's talk exactly about, you know, the next grate adventueat will be and the possibilities of who still want to go up in space. >> reporter: you know, it's a risky proposition what nasa is

doing right now, because they are basically saying you exertion companies, low earth orbit is yours and what we are going to do, nasa is, we are going to do what we do best which is going outward. nasa's plan is build a heavy lift rocket and paw capsule on top it and maybe send humans to an asteroid by 2025 and mars shortly there afterwards. the problems the heavy-lift rocket they need hasn't been built yet. the capsule is, in fact, a mock-up that was just delivered here today so people could take a look at. . the issues are will there be a national will down the road to fund a mission to mars or an asteroid? and some people who are in nasa's corner are still, though, really concerned that there may not be a national will and there may not be the money down the road to do it. certainly not to go it alone on pricey missions like that.

>> we look forward to the special coverage, john. you're going to be a big part of that. thank you so much. stay with cnn this friday at 10:00 a.m. eastern at the space shuttle "atlantis," it takes off for the last time. kate's north american tour rolls on. this morning, they are in yellow knife, canada. going to play field hock. yesterday, it was dragon boats. who won? the duke or the duchess?

well, they continue to charm canada. will and kate have cooked, bugied and now rode, this time in rhode island. >> the duke and duchess hit prince ed world island. >> was it worth it? >> he was so personalable and charming. >> what did you talk about? >> i had my ipad and he said he saw it was the new toy. >> what did you speak about? >> the camera just kind of following. he said aren't they the most interesting things as they keep following you, and yeah, i am still shaking. this is so exciting. >> william took to the skies, a search and rescue pilot by

profession, he was keen in meeting up with this. an emergency helicopter landing on water. palisades, no doubt, holding their breath. then the couple took to the water together, each in their own boats. they are a sporty and competitive couple. then to the beach. this area was famous for its seafood. and then a trau degsal welcoming ceremony. >> and then the couple wanted to experience the great outdoors, and they will go and meet local people living local lives and sitting around camp fires and teepees, and the duchess getting involved in local crafts, and she will see the process of

moose leather being made. >> and including a game of what else? street hockey with a group of kids. hi, it's still center stage in washington. the negotiations over increasing the debt ceiling, but so far for this week no meetings scheduled between the white house and congressional leaders. i will tell you what the impasse is all about at the top of the hour. i am meteorologist, jacqui jeras, and still eight people missing after a boat capsized. i am david mattingly in orlando with the latest on the deliberations in the casey anthony murder trial. coming up also in the next hour, more legal trouble for former imf head, dominique

strauss-kahn. lawyers going to court today. a french writer alleges he tried to rape her eight years ago.

two of baseball's biggest

comebacks? >> yeah, good to see the future hall of famers back. albert pujols could be back from a broken wrist today. he was supposed to be out four to six weeks, maybe longer, and just another reason why they call him the machine. last night, shortstop derek jeter returned to the yankees' lineup. he did not get a hit but reached on a base hit right here. jeter is six hits away from 3,000. adam dunn has been a great slugger for a decade, but this year he has been awful. and he got just a single got, yes, a standing ovation. the hometown fans of chicago mocking him, and he tipped his cap and played along. and later in the game, he got a second standing o, and this one he earned. a huge shot gone. he said it had been so long he

almost forgot what it was like. that was the difference as the sox won, 5-4. and then majerle goes up the middle. and omar infante throws it with a bare hand for the out pap two-hit shutout for the phillies and they win 1-0. and then the greatest day of his life for djokovic. he danced to his favorite band.

>> yeah, i know this band. a tough wait for casey anthony and everybody vested in her murder trial. the jury is in its second day of deliberations. former imf chief, dominique strauss-kahn has separate rape charges. and then resigning after nine days on the job. he was responsible for rebuilding after the earthquake tsunami disaster four months ago. he has been blasted at tone deaf and insensitive over many things he said to local officials. well, get ready for spending cuts and tax hikes. time is running out on a possible deal to raise the debt ceiling. no deal and the government cannot pay the bills and we pay the price.

any closer to nailing something in the negotiations? >> reporter: -- >> we apologize, and we will try to get connected there. obviously an issue with her audio. let's talk about the fact that it's day two in the deliberations, in the casey anthony trial. jurors, as you know, weighing seven charges. david mattingly is following all the developments in orlando as the anticipation builds. what do we know at this point? >> what we know is what we see, and today when casey anthony walked into court, she appeared to be agitated a bit and involved with a conversation with her defense attorneys, very animated. we don't know what that was about. and the jurors normally come in and they are usually dressed for

comfort and being able to sit there in court all day long. some of them came in today and addressed for business, one man wearing a tie, collared shirts, and some are suggesting that could be a sign they are thinking they are going to wrap up today and they were dressing to appear in front of the cameras afterward. again, all speculation today. again, we only know what we see. and that is not a lot, kyra. >> okay. stay tuned, as we say. david mattingly live in orlando. let's get back to the white house. as i was saying, brianna, and i know you could hear me, and let's get the answer now, are we any closer to negotiating a deal here on the debt? >> reporter: very good to talk with you. the answer is we're still a long

ways from it. we will be waiting for the details of this for sometime to come. we know there are staff discussions going on between the white house and congress. the house and central are in this week. i have to tell you, there are no meetings as far as we are aware that are publicly scheduled between the white house, between the principles, and so the schedule is open and it will allow for them to sort some of the details out. the impasse at this point has to do with tax increases. the republicans say it will hurt the economy to have any sort of tax increases, and democrats are demanding them, and they have been ratcheting up the talks. take a listen to this.

this is when biden was talking to labor supporters in las vegas. >> these guys actually believe -- they're not making up, it's not just protect their wealthy friends, they believe that a strong u.s. economy rests upon a never increasing concentration of wealth and power in the hands of a relatively few enlightened guys that they think are smarter than we are. >> reporter: pretty tough words there, and just to put it in perspective, the vice president is the one leading the talks. you had democrats and republicans alike for creating a respectful tone, and here you have him ratcheting up the rhetoric, and you see the hard line the white house is taking and you are seeing it right there. >> a hard line indeed, and we'll see what happens before august 2nd. coast guard crews and the navy searching for nine people

missing after a ship wreck. more than 40 people were aboard the chartered fishing boat when it went down on sunday. half of them americans. chris guard lieutenant filled us in on the search efforts. >> we have a c1-30, and they are trying to look through the sea, and we're plotting a drift to see if we can find anything. we have had two crews thrown out with the rescue helicopters, and there are airborne and surface assets to see if there are any survivors. >> jacqui jeras is looking at the conditions for us. >> the weather that caused the boat to capsize is now a much

calmer area. and in the meantime, the seas are calmer and the sun is out, and it's good visibility for search and rescue, but the temperatures are extremely hot. we will zoom into the area and show you where this is. the island of san luis, and there are no cities here, just some beach, and we'll show you another map there as that one seems to be going a little crazy. i did want to tell you that the water temperatures themselves, about 84 or 85 degrees, and that's good in terms of survivability. no risk of hypothermia there, and so the concerns are if they are able to stay afloat and possible dehydration. now, there could be winds with more chop to the region, and that's something we will watch for more closely in the next day or two. >> thank you. a drawdown of troops in

afghanistan begins this month, and not only does that mean less troops in the frontlines, but three heavy hitters are moving on as well. >> yeah, obviously, you know, david petraeus moving over to the cia, and the retirements of defense secretary bob gates, and soon, you know, admiral mike mullen. it's a changing of the guard as well as ambassador karl eikenberry leaving. these are basically the men in the room. these are the people who have the president's ear when it comes to time to make decisions like do you go for a surge, or how many troops do you surge in and how many should come out. now there will be new faces around that table when these decisions get made. the war in afghanistan will take a turn as the new figures come into play, because the war which

has been primary concentrated in the south for the last year or two, is now -- you will see a lot of shift to the east. not so much with u.s. troops, but a lot of assets, surveillance and recon suns, so the decisions that will be made over the next year or two, very important to see what happens in the east. >> chris lawrence from the pentagon. thank you. there's a lot of things we hate paying for when we fly, but how about paying to speed through the security line? some saying sign me up. and then more problems for the former imf leader. [ male announcer ] this is larry...

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unlike fish oil, megared softgels are small and easy to swallow with no fishy smell or aftertaste. try megared today. stories making news cross-country in california. a bus carrying firefighters to battle the blaze crashed last night in palmdale. at least nine people injured. some were actually trapped inside the bus. in iowa is teen run over by a train lives to tell about it. the teen blacked out between the tracks. when he woke up the train was passing over him. the railroad wants to press charges. a prison inmate suing the state because -- are you ready for this? he can't have porn in his sell. he says a lack of ron raunchy

reading material. and dominique strauss-kahn could be facing another charge. a french writer says strauss-kahn tried to rape her eight years ago and today her lawyers are going to court. joining me to talk about this, criminal defense attorney, holly hughes. let's go ahead and start with the fact that this happened eight years ago. >> on april -- on rape, or attempted rape. but based on the facts that she shared with her lawyer, they are seeking to go under the statute

of 10 years. rape is a he said-she said, unless you have dna, and then it's not always definitive. we have no dna, but we have something called immediate outcry. when somebody is attacked or sexually assaulted, if they go and tell somebody within a day or 24 hours, we call that an immediate outcry, and it's like an excited utterance where you are telling the truth because you are so upset about what happened to you, and we do have that here, and she called her mother immediately, and locked herself in the car and sat there an hour and a half until her mother showed up. when her mother showed up, the mother could testify there was a broken heel on her shoe, but, again, we are back to unfortunately, he said-she said, because the assault, thankfully

did not get far enough to produce dna at this point. >> could these new charges impact the other case at all, or could the other case impact this case? >> it's possible it would affect the new york case, because in the united states we have something called similar transition law. in criminal cases, you are not allowed to tell something bad the defendant has done in the past, because you don't want it held against you, and 20 years ago he did this and therefore he did this now, and now we could say it's so similar, another sexual assault attack. and the courts are wide open and lenient, and they let prior assaults come in. here is the glitch with that. the attorney that represents the writer in france who wants to file the complaint indicated even if the united states wants to bring the two cases together, they have no interest in cooperating, which i find a

little odd, if you want to take a sexual predator off the street, does it matter if they do it here or there. that may prevent the use of the french case here in the united states. >> interesting. thank you. when it comes to flying, fees are a way of life. now there is a proposal that would allow you to speed through security for an extra fee. my guess is a lot of people would pay to be able to do that, alison? >> reporter: you guessed right. the u.s. travel association says half of all flyers who were surveyed would pay if it meant they could get through the security faster. it's a large chunk, especially when you look at the proposed fee, up to $150 a year. some people think it's worth it. it would be called the trusted traveler program. you could go through the government background check and that would store your information and that would let you go through a new, faster, different security line than everybody else, and of those who

are business travelers, guess how many say they would pay? 75%, of course, because they fly more frequently than the leisure travelers. >> what are the odds of this plan actually being implemented? >> the tsa is definitely backing it and hoping to give it a trial run later this year. true, we did have similar programs in the past without much success, but the travel association says you know what, something has got to be done, because we are carrying on more bags to bypass airline fees, and that's costing the tsa more money, and this is a good deal if people are ready to pony up $150 a year. talking about money, we are flat with the stocks. we got a decent report on factory orders, and things turned positive for the factory orders, but you will not see movement until the end of the week when we get the big government jobs report.

>> thanks. problems for the boy whizzard, harry potter. countdown to liftoff. we take you to space kennedy center where preparations are being made for history. [ mom ] one of the challenges for kayla being gluten-free is actually finding choices the whole family will love. five flavors of chex are gluten-free, including the honey nut flavor. and it's nice for me to be able to say "yes" to something that they want to eat. [ male announcer ] chex cereal. five flavors. gluten free.

the boy whizzard reveals a dark side. he admits he became secretly reliant on alcohol to fuel the long hours on the set. radcliff now 21 said he has sober last year and is enjoying

life more. >> the black eyed peas releasing a game. and then will smith putting together a team to do a remake of the movie "annie." and then a veteran of 80 shuttle missions by the way. not a better person to be talking about this, john. will the weather hold for the launch? >> reporter: fingers crossed, fingers crossed. nasa is in the middle of a briefing right now, and everything is looking really good as far as the shuttle vehicle is concerned. the issue is, of course, it's summer in florida, and that

means the weather, and the weather officer just said that there is only a 40% chance of favorable weather on friday morning. there's a tropical wave moving this way, etc., etc., etc. we have heard it before. so it could be a day or two, and hopefully off the ground friday morning, but it's not looking real, real good right now. everything else is looking very good. the crew, in fact, led by commander chris ferguson arrived here yesterday afternoon on their t-38 training aircraft. they landed a few miles away at the landing strip. it was quite a moment there yesterday. as the crew arrived, they, of course, are ready and excited to have been selected, and feel very privileged that they are the ones that will be flying

this last flight in the space shuttle program. and in just about 2 1/2 hours from now, nasa will resume and pick up the countdown and the clock will start to countdown for the final launch coming up hopefully on friday morning. >> a lot of butterflies going in the stomachs of space fans. john, also a lot of excitement for folks on twitter that will get a chance to come and see this final launch? >> reporter: yeah, you know, this is like the third time nasa has done a tweet up at the kennedy space center, and they send out a notice and all the other twitter folks there flock on to nasa's site and register, and 5500 people signed up and from that 5,500 people they selected 150 people coming here, and they will come from a dozen

different countries around the world. what an honor for them. i cannot wait to talk to some of them and ask them how they feel about witnessing history. that's what it will be whenever the shuttle gets off the ground. >> thank you, john. the space shuttle "atlantis" takes off for the very last time. coming up, leon pennetta especially meets with obama as the secretary of defense. and then the casey anthony trial. we will get an inside look at what is going on inside the courthouse, on day two of deliberations. ♪ ♪ look at that car, well, it goes fast ♪ ♪ givin' my dad a heart attack ♪ [ friend ] that is so awesome. ♪ i love my car [ engine revving ] [ male announcer ] that first chevy, yea, it gets under your skin.

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checking top stories. the search goes on for as many as nine people after a tourists boat capsized off california baja's peninsula. the head of the new monetary fund takes over today. she was chosen to lead the imf after strauss-kahn was arrested on rape charges. meanwhile, another complaint will be filed against strauss-kahn. a french righter says he tried to rape her eight years ago. after seven weeks of questions, answers and arguments, a different kind of drama for casey anthony. she's sitting in the orlando courthouse as the jury deliberations for a second day on murder and child abuse charges. and holly hughes joins us again. your guess is today, possibly

early tomorrow, we will know her fate? >> i think we will. it's a serious, and very mature jury. they have been taking notes and paying close attention. we are hearing our reporters who are in the courtroom, david mattingly piped in and said they don't make expressions or talk to each other, and they are focusing in on the evidence and watching what is going on. these folks have been away from their family and tv. they have more restrictions than the defendant, casey anthony, and she's in jail. she is watch tv and listen to the radio. >> you have been watching the testimony and watching the lawyers at work. what do you think is going to happen here? maybe i don't want to put you on the spot there totally, but the

options, most likely where do you think it will go? >> based on the closing arguments, which is the grand finale of any trial. we say a trial is a search for the truth, but it's also kind of a show. we're watching to see what the players are going to give us, and when they did their final closing arguments today, jeff ashton -- the prosecutors in this case, they brought it home. they brought it back to who else but casey anthony could be responsible for the child's death, and who benefits from it. if you saw the last chilling image that the prosecutor put up. she put up two pictures, one of the defendant, casey anthony, with the tattoo, "a beautiful life," and then she asked the jury, whose life was made better by the death of this child. i don't think they will get the

death penalty. this is a young woman. an attractive woman to some people, and the bottom line is she comes from a very dysfunctional family. we have seen that play out. >> lots of sympathy for her. >> yeah, they will say she's not wholey responsible for turning out as nutty as she did. a police escort to the hospital, at least that's what he thought, until cops blew out three of his tires. and then the latest on will's and kate's visit to canada. .something old? ...or something new? ...or maybe, just maybe... it's something you haven't seen yet. the 2nd generation of intel core processors. stunning visuals, intelligent performance. this is visibly smart.

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time for political buzz. your rapid fire look at the hottest topics of the day. three questions today, and 20 seconds on the clock. playing, robert zimmerman, and kelly goth, and our political strat gist. leon pennetta meets with obama as the new secretary of defense. what should be number one on the agenda? robert? >> certainly, secretary pennetta has to focus on producing $400 billion of defense cuts while maintaining u.s. military strength and troop morale. and then we're lucky to have him

in this position. uniquely qualified. >> how do we keep america safe while facing the budget constraints and not engaging in a strategy by taking a knife to the pentagon to satisfy the constraints. that's the number one issue. >> it's going to be afghanistan, afghanistan, that should be the focus. but to echo bob, he has 4$400 million in cuts to face from the get go, and donald rumsfeld says that will be too deep for the troops. >> and then andrew cuomo could replace biden on the 2012 ticket. does the vp choice matter? >> yeah, a lot. it matters where obama wants to take the country, and it matters who the person is. if the person is unqualified, that would be scary to have that

person take a president's place. i would like to see a different president as well. >> robert? >> kyra, this topic is a great source topic to the media and then there is real people that vote for family. >> as far as whacky rumors go, this is high on the list. why would the president replace one brash guy from a blue state with another brash guy from another blue state. if he would replace the president, it would be with a woman. >> all right. vice president biden now joining twitter. what do you think, will a 140-character limit be a good

thing for this vice president? >> absolutely not. i love vice president candor's candor. no sound bite can reduce it. >> ron? >> i am worried about the 140-character limit, because any sequence of numbers that biden gives could be the nuclear launch codes, and we don't know where it's going. four numbers could be the numbers to his atm. >> and yeah, vice president biden has the gifts that keeps giving with gaffes. >> kelly gets an extra ten seconds a day to plug her book. i promise when you guys are out with a new book, you get an extra ten seconds. >> i will start writing now. >> my first novel is about what happens to a group of friends when one of them runs for

president. by shear coincidence, the candidate is african-american, cha charismatic, and in his 40s. checking stories now across country. a barge used to set off fireworks smolders in the charles river. the fire broke out early today but was quickly put out. and this man thought he and co-workers were given an escort to the hospital, but it turns out the police were on their tail for speeding. and then disabled war veterans. the group was taken tandem

skydiving for the fourth of july. take a listen. >> well, they continue to charm canada. will and kate, they have cooked, buggied, cruised, and now rode. nicky penny says she pets kate was thrilled to get into that dragon boat. nicky knows firsthand kate has waited years to do that. we'll have more on that in just a minute, but first you're about style and image, so let's take a look. you spent a lot of time with kate. here she and will are. they went to visit these -- this group of homeless youth in canada, and it's just amazing to see them, you know, talking with these young kids. it seems so different from them.

obviously growing up in a totally different environment. what is your take -- actually, let's go back to that photo. let's go back to the homeless youth there. what is your take on this. what does this say about kate? >> kate is just the loveliest, most down-to-earth person. she would have enjoyed meeting all of these people, and that's why the whole world is falling in love with kate, or has fallen in love with her, because she is just so down-to-earth, and just so natural, and, you know, such a natural beauty and such a kind, generous person. >> and not only that, but quite the athlete. now, let's roll the video of her and her husband yesterday getting pretty sweaty in the boat. she even looks amazing in this scenario. >> yeah, i know. >> she could be wearing anything, and you're paying attention to kate, right?

>> yeah, and even in 2007, she was taking part in a dragonboat competition as well which she trained for with this team called the sisterhood. she was excited about that. but because of the high publicity that she brought with her to the competition, she had to back out at the last minute. i know she would have been so excited about doing the dragon boat race yesterday, and i am glad that came across in her fashion. and she was nautical all day from her chic dress to when she was in the boat in those carpri pants and boots. she looked sensational. >> you have such great insight here. yes, we are noticing her fashion, and they have been talking about this as the kate affect, right? people are buying whatever she is wearing and it's selling out immediately, but there is so

much more behind the dress. these two really are a really down-to-earth special couple. >> and that's the thing, and this is why she's having this affect in the world, and being the biggest commodity in fashion, and selling out a dress in seven minutes and having web sites crash. she's having this affect where people want to copy her look, not because of the fact that she's a style icon, but because of who she is as a person. she can express her personality through her clothes. she has been recycling a couple dresses on the trip that she has worn before at previous events. it's very unhollywood. not many actresses do that here. but that's the great thing about kate. she is just herself, and that's

why the world is mez rma rised her. she inspired, and i am sure she made their decade. >> i encourage people to go online and see the pictures. she is mingling with these people with pierci with piercin mohawks, and it's just great. he's out of police reach in a mexican hideout. now the suspect appears to be taunting them as well. that story coming right after the break. [ male announcer ] great tasting tap water can now come from any faucet anywhere.

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well, jeter is back. he returned after missing 18 games with a strained right calf. jeter is six hits away from 3,000. and then the phillies here. and omar infante makes the

barehanded catch, and turns to first and gets the out. phillies won the game, 1-zip. and then novak djokovic. he called it the greatest day of his life. he sang and danced to his favorite serben band. the murder suspect fled across the mexican border and is out of police reach. not only that, he seems to be taunting them from his mexican hideout. >> reporter: known as a stock tri trader, and yoga teacher.

they also believe he did this. >> she was hit with force somewhere on her body. she was also choked to death according to the medical examiner. >> reporter: that was last october at her house outside washington. at first the case had all the signs of a burglary gone bad. but police say as the evidence built, it led them away from the teenager who is no longer a suspect and straight to jorge londires. investigators say he skipped across the border to juarez, mexico. the fbi has filed a criminal count naming him as the only suspect in the murder. he not only refused to come back to the u.s., but it appears he

is taunting police. the "washington post" obtained an e-mail. of course you are invited to cross the same bridge in the opposite direction. >> how frustrated are you at that? >> it's causing us a delay. we believe he is using the shield of the international border to delay and slow this process. we would like justice to start and like him to return and have his day in court. >> reporter: dan morris obtained the e-mails and spoke with him over the phone. and he even corrects the grammar when they answer the e-mails. >> he's a confident person. confident when he was talking to

me. friends who met him said he seems confident and that's the posture he has taken with the detectives. >> we have tried to contact him over the phone, with e-mail and facebook messages. we have not heard from him. in his conversations with the washington post, he denied killing the woman saying he was not in the u.s. at the time of the murder. police won't say much about any extradition deal with the mexican authorities, only that they are working through the process. a retirement savings nearing record highs. we'll have the details next. man 1: send, that is the weekend. app grapgic: yeah dawg! man 2: allow me to crack...the bubbly! man 1: don't mind if i doozy. man 3: is a gentleman with a brostache invited over to this party? man 1: only if he's ready to rock! ♪ sfx: guitar and trumpet jam vo: geico. 15 minutes could save you 15% or more on car insurance.

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positive economic news few and far in between these days, but good news for you, retirement savings near record highs. alison, put it in perspective for us. >> how is this for perspective? $18 trillion. that's how much we tucked into our retirement plans, and i am telling you how much our retirement savings have been growing for the past two years. in fact our savings is getting close to the record high that we put in 2007, but, then, of course, we saw the savings plummet during the recession. here is why we're seeing the improvement in the retirement accounts. the stock market had a strong rebound, whether we want to believe it or not.

and the reality is people are setting aside bigger chunks from their paychecks. you have to remember, you can't try and time the market. >> we keep hearing that wages are stagnant. how are people able to save more? >> well, there are a few reasons for this, and they are not all good. the sad reality is, people are delaying retirement, because they have to make up for what they lost in their nest eggs. now, keep in mind stocks are still number one, but some people are moving their money to less volatile investments. you look at the s&p 500, and it has rizen 5%. >> alison, thank you. and here are sories

developing later today. the countdown begins at 1:00 p.m. eastern. the duke and duchess of cambridge take part in the activities in their canadian tour. michelle obama will be at home plate and the child of a service military man throws out the first pitch. we'll hear what romney is saying about president obama and the economy next. an ingredient that works more naturally with your colon than stimulant laxatives, for effective relief of constipation without cramps. thanks. [ professor ] good morning students. today, we're gonna... thanks. right now, go to priceline for a sneak peek at recent winning and better than ever! hotel bids to find where you n save up to 60% on hotels. * we'll even email you other people's winning bids, so you'll know what price to name. *á with new hotel bid alerts, from priceline.

the governor's association says it set a new record, taking in $22 million in the first half of the year. who's getting the credit here? >> you might see some of the credit going to the governor of

texas, rick perry. he is the chairman of the rga, and yes, this is good news for the republican governor's association. there have been all of the stories in recent months about what republican governors are doing in the various state houses across the country. rick perry is on the minds of a lot of conservatives right now. and if he does get into the race, he will make it more interesting for people like mitt romney who is basically the frontrunner right now. earlier this morning mitt romney had a town hall meeting in new hampshire. he is crisscrossing the state. it seems like almost every day these days, and there was a bit of a dust-up last week, when romney was in allentown, pennsylvania, and he was asked hasn't the economy gotten better

since obama has been president, and he said i did not say things got worst. he repeated that this morning at this town hall meeting. >> so at a time when wanted small business and intrapreneurs to step forward and get the economy going again, what he did caused them to pull back. and so he made the recession deeper and made it last longer and the recovery more anemic. he made things worst. >> that will make hairs stand up all over the backs of necks on the dnc. it's getting into the summer months and we'll hear more rhetoric here as the days go on and the campaign heats up. >> thank you so much. we'll have your next political update next hour. and for all the latest political news go to the website, c

cnnpolitics.com. and that does it for us. >> july fourth, nice seeing you. >> have a fun show. >> thank you, you too. want to get you up to speed for tuesday, july 5th. jurors will decide casey anthony's guilt your innocence. prosecutors say anthony killed her daughter, caylee, so she could live a party lifestyle. a language expert has been in the courtroom, and her eyes trained on the men and women that make up that jury. >> what i identified is that we have seven jurors that are more pro-prosecution. i established the behavior, and body language, and i was able to